Suppose a Competitive Firm Produces 100 Units of X for a Price

question 21

Multiple Choice

Suppose a competitive firm produces 100 units of X for a price of $10 a unit.The firm employs labor such that the marginal product of labor is 20.The wage paid for one unit of labor is $60.Given that capital is kept fixed,the firm _____.

• A)is in equilibrium
• B)is suffering an economic loss
• C)should increase production
• D)should reduce output

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Definitions:

Accuracy

describes the closeness of measurements, observations, or assessments to the true value or standard.

Hippocampal Region

A part of the limbic system, which includes the hippocampus itself and the underlying cortical areas, involved in the formation of semantic memories.

Epileptic Seizures

Episodes of abnormal electrical activity in the brain, leading to various symptoms such as convulsions, sensory disruptions, or loss of consciousness.

Nondeclarative Memories

Memories that are retained and retrieved without conscious awareness, often involving skills and habits.